High Noon: Secured Lenders Duel in Bankruptcy Sale Process
March 8, 2011
A company finds itself in distress. Its debts are coming due. Its cash is low. The company plans to file Chapter 11 under the Bankruptcy Code. Once in Chapter 11, with multiple sets of secured lenders, the games begin. These Otterbourg attorneys describe some recent case law as groups of lenders compete to take ownership of the Chapter 11 debtor pursuant to a Section 363 sale or a plan of reorganization, exploring just how critical the application of the terms of the intercreditor agreement may be in determining who prevails. High noon: secured lenders duel in the bankruptcy sale process.
